The Ministry of Industry has affirmed its commitment to accelerating decarbonization of the industrial sector as a concrete step in supporting the Net Zero Emission target by 2050. This effort is crucial given that the industrial sector accounts for significant emissions that continue to rise with national economic growth. The Minister of Industry stressed that decarbonization also opens up great opportunities for industry.
“Decarbonization also offers great opportunities for industry, by opening access to consumers who support environmentally friendly products, and by creating new market opportunities through strict government emission policies. In addition, sustainability principles are a key preference for investors, with around 57% of investors showing greater interest in sustainable investment,” Minister of Industry Agus Gumiwang Kartasasmita said at the Mata Lokal Festival 2025, themed “Cutting Edge for Local Sustainability”, in Jakarta on Thursday (8/5).
As part of its Industrial Decarbonization Strategy, Kemenperin has set out various measures to support the industrial transition to a greener economy. These include drawing up a Decarbonization Roadmap, implementing a Carbon Trading Mechanism, and Emission Reduction Policies designed to ensure the industrial sector can adapt to the Net Zero Emission target by 2050. Kemenperin is also focusing on applying the Circular Economy, Carbon Capture and Utilization (CCU), and developing Green Industry Standards that promote efficiency and sustainability in every production process.
“There are nine industrial sectors prioritized for emission reduction: cement, ammonia, metals, pulp and paper, textiles, chemicals, ceramics and glass, food and beverages, and transportation,” the Minister of Industry said.
A concrete effort by Kemenperin has been the issuance of 149 Green Industry Standard Certifications as of December 2024, with 62 Green Industry Standards and 46 Green Industry Standard Regulations, covering raw material management, energy efficiency, water management and waste reduction. This step aims to encourage companies in Indonesia to become more environmentally friendly and resource-efficient. Applying these standards has helped reduce the environmental impact of industrial activities, which also contributes to meeting the emission reduction targets set.
Kemenperin also holds the Green Industry Awards to recognize those who actively support the application of green industry principles in Indonesia. From 2010 to 2024, Kemenperin has presented the award to 1,165 companies that showed the best performance in applying green industry and transforming toward green industry. The award consists of five main categories: Best Performance in Applying Green Industry, Transformation Toward Green Industry, Green Industry Certification Bodies (LSIH), Green Industry Auditors, and Regional Governments that actively encourage and support industry in their areas.
In addition, Kemenperin is strengthening the existing green industry ecosystem to support resource efficiency and ensure sustainability principles through the development of the Green Industry Service Company (GISCO). GISCO is intended to bridge industry and green financing providers (green financing providers) by aggregating funding according to industry needs, so that companies are not burdened with high costs.
“We will facilitate GISCO. Investors, including those from financial institutions, will join GISCO and fund programs to transform Indonesia's industry into more sustainable industry. We realize that accelerating this transformation is very important, but the cost is not small. Transformations like this are indeed expensive, and most businesses still see them as a cost rather than an investment. This is a classic challenge. The government must therefore step in and play a role in helping prepare financing schemes that industry players can use to carry out the transformation process,” the Minister of Industry explained.
Kemenperin is also promoting the development of green industrial estates toward the Smart-Eco Industrial Park, the fourth generation of industrial estates. This includes high-tech, labor-intensive and water-saving estates. Applying Resource Efficiency and Cleaner Production (RECP) is also an important element in developing Eco Industrial Parks. As of April 2025, six industrial estates have become pilot projects for Environmentally Sound Industrial Estates: Medan Industrial Estate, Batamindo Industrial Park, Krakatau Industrial Estate, MM2100 Industrial Town Bekasi, Karawang International Industrial City and Greenland International Industrial Center.
The Minister of Industry hopes that collaboration between government, industry and the public can accelerate the achievement of Net Zero Emission by 2050, while strengthening a sustainable economy that supports the preservation of the planet. “We hope this effort will lead to stronger collaboration between industry players, government and the mass media to jointly make a positive contribution to sustainable economic development and preserve our planet,” he added.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia